Negotiating when you are both a buyer and a seller

Manage the dual pressure of getting the best price for your sale and the lowest for your purchase.

Understanding your leverage

In a dual-transaction scenario, your leverage depends heavily on which part of the process you are in. As a seller, you want to maximize your sale price to increase your buying budget. As a buyer, you want to keep costs down. The key is not to let one transaction compromise the other. For example, do not accept a low-ball offer on your current home just because you are excited about a property you have found. Conversely, don't overpay for a new home because you have just had a successful sale. Keep the two deals mentally separate. Use the services of a professional advocate if you feel the emotional pressure is clouding your judgement.

When buying, your best leverage is your readiness to act. If you have already sold your home and have a flexible settlement date, you are an attractive prospect to many sellers. You can offer a 'clean' contract with few conditions and a timeline that suits them. In Victoria, where private sales and 'expressions of interest' are common alongside auctions, this flexibility can often win you the property even if you aren't the highest bidder. Sellers often value certainty and ease over a few thousand dollars extra. Highlight your position to the agent during negotiations to make your offer stand out from the competition.

Managing the agent relationship

Remember that the estate agent works for the seller. Their job is to get the highest price. While they can be a great source of information, do not reveal your maximum budget or your urgent need to buy. Keep your 'cards close to your chest'. Similarly, when selling your home, be clear with your agent about your expectations but listen to their feedback from the market. If every potential buyer mentions a specific issue with your home, it is likely affecting the price. In Victoria, agents must provide a 'Statement of Information' for properties, which includes a price range and comparable sales. Use this to ensure your expectations are grounded in reality.

• Never disclose your maximum price to the buying agent
• Keep your selling agent informed of your buying progress
• Use 'Statement of Information' data for objective pricing
• Practice your auction bidding strategy
• Negotiate on terms (settlement date) as well as price

Auction tactics for upgraders

Victorian auctions are high-pressure environments. If you are bidding, have a firm limit and stick to it. It is helpful to have a friend or a buyer's advocate bid for you to remove the emotion. If the property is passed in to you, you have the first right to negotiate with the seller at their reserve price. This is often where the real deal is made. If you are the seller, ensure your reserve price is realistic based on recent sales. A property that passes in can become 'stale' and harder to sell later. Trust the process but stay in control of the final decision. You are the one who has to live with the financial outcome.

When selling by private sale, you may face 'gazumping' in a hot market, where a seller accepts a higher offer after already agreeing to yours. In Victoria, a sale is not legally binding until both parties have signed the contract and it has been exchanged. To avoid this, move as quickly as possible once your offer is accepted. Have your conveyancer ready and your deposit funds accessible. Conversely, as a seller, be wary of accepting an offer that seems too good to be true but comes with many conditions. A lower, unconditional offer is often better than a higher one that might fall through during the cooling-off period.

Finally, keep a cool head. The property market can be frustrating, especially when you are trying to coordinate two moving parts. There will be moments of uncertainty and perhaps even disappointment. Maintain a long term perspective. Whether you are negotiating a 5,000 dollar difference in price or a 30-day difference in settlement, ask yourself how much it will matter in five years. Focus on the big picture: securing a suitable home for your family's next chapter. A successful negotiation is one where both parties feel they have achieved a fair outcome and the transition can proceed smoothly.